Bill Miller IV critiques MSCI’s proposal to exclude Bitcoin treasury firms

Bill Miller IV has a problem with how MSCI wants to decide who counts as a real company. On September 29, 2026, the Chairman and CIO of Miller Value Partners submitted a letter responding to MSCI’s consultation on how to classify “non-operating companies” in its Global Investable Market Indexes.

His central argument is simple. A rule built to catch Bitcoin treasury firms could also catch companies nobody would call a crypto play, including Berkshire Hathaway.

What MSCI is proposing

The consultation is widely viewed as aimed at digital asset treasury companies, or DATCOs. These are public firms that hold large amounts of Bitcoin and other crypto on their balance sheets.

MSCI’s new approach uses a two-step screen. The first step checks whether a company’s operating assets exceed 50% of its total assets.

MSCI ran a simulation using May 2026 data to see who would be affected. Companies including MicroStrategy (MSTR) and Metaplanet were flagged as at risk of removal under the operational asset threshold screening.

Strategy, as MicroStrategy is now known, has significantly outperformed the S&P 500 since adopting its Bitcoin treasury strategy in 2020.

Miller’s objections

Miller’s critique focuses on the mechanics of a rules-based approach. He argues that rigid screens could inadvertently shrink the equity opportunity set that index investors are supposed to have access to.

In his view, the framework risks creating arbitrary exclusions. He specifically pointed to long-established firms like Berkshire Hathaway, along with biotech startups, as the kinds of companies that could end up complicating or failing inclusion under the proposed screens.

He also called for broader, executive-level discussions about MSCI’s evolving role. His point is that markets are shifting toward new business models and new asset classes, and index methodology needs a bigger conversation than a narrow consultation can provide.

How we got here

This is not MSCI’s first attempt at the issue. In December 2025, the index provider floated a plan that targeted companies holding more than 50% of their assets in digital assets.

That proposal was dropped in January 2026. MSCI said it would pursue a more comprehensive review instead.

The timeline is tight. Feedback on the proposal closed on September 30, 2026, one day after Miller sent his letter. A decision is expected by mid-October 2026. Any resulting changes are set to be implemented in November 2026.

What this means for investors and index providers

The immediate stakes fall on companies like Strategy and Metaplanet and the investors who hold them. Index inclusion matters because a large pool of passive money follows index membership automatically.

If these firms are removed, funds that track MSCI benchmarks would no longer hold them by default. The research points to the possibility of downward pressure on share prices as the investor base reacts to potential removal.

DATCOs often rely on equity markets to raise capital, and weaker access to passive investors could make that model harder to sustain.

For investors, the key dates are now fixed. The mid-October 2026 decision will show whether MSCI takes the criticism on board or proceeds with the operating asset test largely intact.

If the screen survives, holders of Strategy, Metaplanet and similar firms should expect index-driven rebalancing around the November 2026 implementation window. If MSCI softens its approach, it would mark the second time in under a year that pushback reshaped its crypto policy.